Fitch downgrades Whirlpool

Fitch Ratings said it downgraded Whirlpool Corp. and Maytag Corp.'s long-term issuer default rating and senior unsecured notes to BBB- from BBB.

Fitch lowered Whirlpool's short-term issuer default rating to F3 from F2, commercial paper to F3 from F2 and bank revolving credit facility to BBB- from BBB.

The outlook is negative.

The agency noted that appliance demand has fallen in the United States since 2006, offset by international market penetration and growth. Given the disruptions in the credit markets and weakening global economies, Fitch said it expects that global demand will decline considerably in 2009.

Debt-to-EBITDA ratio grew to 2x at Sept. 30, 2008 from 1.3x at Dec. 31, 2007, the agency said, but leverage is projected to fall slightly by year-end 2008.

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